Asia Opportunities

Evidence Based Investing

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Portfolio Characteristics

Inception Date – September 2014
Currency – USD
Dividend Yield – 1.83%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

The strategy uses a bottom-up stock picking approach to create a concentrated portfolio of securities from developed and emerging markets in the Asia Pacific region, including Japan, Australia and India. It invests in a portfolio of individual companies that are selected through an intelligent and disciplined process.

We believe there are pricing inefficiencies in Asian stock markets; sometimes the best investment opportunities are under-researched and/or mispriced. Asia’s “Blue Chips of Tomorrow” may not yet be high profiles names today. Because Asian markets are often driven by macroeconomic and political factors that are separate from idiosyncratic ones, we combine our quality stock focus with tactical exposures to cyclical factors.

The country allocation will generally be in line with the benchmark allocation. The sector allocation can deviate from the benchmark because of the bias towards on stocks with value and quality characteristics.

Portfolio Performance

YTD 2020 2019 2018 2017 2016 2015
Portfolio1.72%20.27%12.12%-11.52%38.81%6.12%-4.57%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio9.08%14.57%0.62%

Allocation

Japan 36.67%

Australasia 3.33%

Asia Emerging 53.33%

Asia Developed 3.33%

America 3.33%

Sector

Financials

10.00%

Industrials

6.67%

Consumer Discretinoary

20.00%

Real Estate

0.00%

Consumer Staples

3.33%

Materials

3.33%

Healthcare

13.33%

Utilities

0.00%

Technology

20.00%

Energy

0.00%

Telecommunication

23.33%

Sector

Financials

10.00%

Industrials

6.67%

Consumer Discretinoary

20.00%

Real Estate

0.00%

Consumer Staples

3.33%

Materials

3.33%

Healthcare

13.33%

Utilities

0.00%

Technology

20.00%

Energy

0.00%

Telecommunication

23.33%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

10.00%

Industrials

6.67%

Consumer Discretionary

20.00%

Real Estate

0.00%

Consumer Staples

3.33%

Materials

3.33%

Healthcare

13.33%

Utilites

0.00%

Technology

20.00%

Energy

0.00%

Communication

23.33%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

10.00%

Industrials

6.67%

Consumer Discretionary

20.00%

Real Estate

0.00%

Consumer Staples

3.33%

Materials

3.33%

Healthcare

13.33%

Utilites

0.00%

Technology

20.00%

Energy

0.00%

Communication

23.33%

Top Holdings

StockWeight

Baidu Inc4.78%

NetEase Inc3.89%

BYD Co Ltd3.81%

BHP Group Ltd3.61%

Murata Manufacturing Co Ltd3.57%

Sea Ltd3.56%

Tokyo Electron Ltd3.53%

Alibaba Health Information Technology Ltd3.51%

Atlassian Corp PLC3.46%

Pinduoduo Inc3.44%

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